Icon
Come back

2 min

30 Mai. 2024

3072

Document retention periods for sole proprietorships: what do entrepreneurs need to know?

Documents
Arbeit
BusinessUA
Ukraine
Document retention periods for sole proprietorships: what do entrepreneurs need to know?

In 2024, the Ministry of Justice introduced some legislative changes that defined new document retention periods for sole proprietorships. Find out more about the current deadlines, as well as other restrictions that every entrepreneur needs to consider when running and closing a sole proprietorship

Legal assistance in starting, running and liquidating a business in Ukraine
Legal assistance in starting, running and liquidating a business in Ukraine
GET


Every entrepreneur should understand that the fact that the procedure for terminating the sole proprietorship has been initiated is a reason to conduct a documentary audit of the taxpayer for at least the last 3 years. And it is the conduct of such an audit that will be the legal basis for deregistering the entrepreneur from the tax authorities. At the same time, the tax authorities have the right to conduct a documentary unscheduled audit. Therefore, if they deem it necessary, they can conduct it at any time. Hence, it is necessary to understand the retention periods for documents for sole proprietorships and other restrictions.


Read this article to learn how to properly close a sole proprietorship.



Back on February 10, 2024, an order of the Ministry of Justice came into force, which amended the “List of standard documents created during the activities of state and local governments, other institutions, enterprises and organizations, indicating the periods of storage of documents”. This list determines the retention periods for the relevant documents.


The main and most significant change introduced by this Order is the requirement to keep financial and tax documents in accordance with the provisions of the Tax Code, whereas previously it was voluntary for individual entrepreneurs.


The retention period for documents and information related to the calculation and payment of taxes and fees for individual entrepreneurs, which is set in accordance with the TCU, is 3 years.


With regard to the possibility of destroying documents, documents relating to reporting periods for which a tax audit can no longer be conducted and for which the minimum retention period has expired (for sole proprietorships - 3 years) are subject to destruction.




Visit Ukraine on social media: Telegram | YouTube | Instagram | Facebook | Twitter | TikTok




How to correctly calculate the period?


The same List stipulates that the retention periods for documents related to the calculation and payment of taxes and fees, contributions, and other mandatory payments are calculated

➤ from the date of submission of tax or other reporting, for the preparation of which the said documents and/or information are used;

➤ in case of non-submission, from the deadline for submission of such reports provided for by the TCU.


Other requirements to be taken into account by individual entrepreneurs


The retention period for certain documents related to financial and business activities has been increased from 1 (or 3) years to 5 years. And they have been subject to the following reservations:

1. Documents related to a tax audit, inspection (audit) by a state financial control body and/or an administrative or judicial appeal of a decision based on the results of such an audit shall be kept for at least the minimum period established and for one year after the expiration of the statutory period for judicial appeal of such a decision.

— In case of appeal - within one year from the date of entry into force of the court decision that concluded the case.

— In case of appealing such a court decision - within three months from the date of entry into force of the final court decision, which cannot be further appealed.

2. Documents that have expired the minimum storage period and relate to reporting periods for which tax audits (inspections) will no longer be conducted shall be destroyed (except for those that may be used to document compensation for material damage caused to the Russian Federation).

3. Documents and information subject to the requirements of Articles 39 and 39-2 of the TCU shall be kept for at least 7 years.


You can get advice on opening, running and liquidating a sole proprietorship in Ukraine on the Visit Ukraine portal. Our lawyers will answer all your questions and, if necessary, help you solve urgent problems. To order a legal consultation or full legal support, please follow this link.


We remind you! Today, sole proprietors can submit their tax returns online. We told you how to do this through Diia or the tax app earlier.


Want to know more? Read the latest news and useful materials about Ukraine and the world in the News section.






Ihor Usyk is the Head of Legal Department at Visit Ukraine


If you want to start your own business in Ukraine, you can get advice from my colleagues.
Professionals in the field of business law will help with all the nuances and problems.




We recommend purchasing it for a safe and comfortable trip to Ukraine: 


Visit Ukraine Insurance - safe travel in Ukraine (insurance covering military risks);

Visit Ukraine Tickets - book bus and train tickets to/from Ukraine;

Visit Ukraine Tours - the largest online database of tours to Ukraine for every taste;

Visit Ukraine Hotels - book hotels for a comfortable stay in Ukraine;

Visit Ukraine Merch - choose patriotic clothing and accessories with worldwide delivery.

Cooperation - cooperation and advertising integrations with Visit Ukraine and Visit World projects.




© 2018-2024, Visit Ukraine. Use, copying or reprinting of materials on this site is permitted only with a link (hyperlink for online publications) to Visit Ukraine.

All rights reserved.

Recommended articles

1 min

Documents Diia.Signature for legal entities: the government supported the changes

Diia.Signature for legal entities: the government supported the changes

The Cabinet of Ministers of Ukraine has approved a resolution regulating the issue of obtaining an electronic signature by legal entities. Learn more about what this means for business and what changes to expect in the future

30 Jan. 2024

More details

2 min

Arbeit Registration of a sole proprietorship on a turnkey in Ukraine: legal support for entrepreneurs

Registration of a sole proprietorship on a turnkey in Ukraine: legal support for entrepreneurs

The current legislation of Ukraine allows you to register a sole proprietorship under a simplified procedure online. However, a large number of nuances regarding the choice of NACE and taxation system can cause serious problems. Visit Ukraine lawyers will help entrepreneurs register their business quickly, easily and correctly. Here are the details of the new service

21 Mär. 2024

More details

2 min

Documents Changing data on a sole proprietorship online: instructions for entrepreneurs

Changing data on a sole proprietorship online: instructions for entrepreneurs

Ukrainians and foreigners registered as sole proprietors can make changes to their sole proprietorship online. Find out what data can be changed, how much the service costs in Diia, and how it works

18 Apr. 2024

More details

2 min

Krieg Obstacles to business during the war: what do entrepreneurs fear most?

Obstacles to business during the war: what do entrepreneurs fear most?

For the first time since the beginning of the full-scale invasion, the majority of businesses named insecurity as the main obstacle to doing business. Find out what else entrepreneurs consider to be serious obstacles and how their attitudes have changed recently

21 Mai. 2024

More details